YASKAWA Electric : Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2022

Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2022 [IFRS]

October 8, 2021

Listed company name: YASKAWA Electric Corporation https://www.yaskawa-global.com/

Representative: Hiroshi Ogasawara, Representative Director, President

Stock exchange listings: Tokyo (First section), Fukuoka

Stock ticker number: 6506

(Note: This document is a summarized translation of the financial statement submitted to the Tokyo Stock Exchange and Fukuoka Stock Exchange for the period stated above. Figures under ¥1 million are rounded down.)

1. Summary of Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2022 (from March 1, 2021 to August 31, 2021)

1. Consolidated Statements of Income

(Millions of yen, percentage change from the previous year)

			Revenue			Operating profit	Profit before tax		Profit
Six months ended		239,907		28.4%		26,867	102.1%	27,836	112.3%	21,323		121.0%
August 31, 2021
Six months ended		186,846		-11.8%		13,294	-8.3%	13,109	-7.4%	9,646		-5.2%
August 31, 2020
		Profit attributable to	Comprehensive income	Earnings per share		Earnings per share
		owners of parent	(basic, Yen)		(diluted, Yen)
Six months ended		21,164		122.5%		27,280	223.0%		80.96			80.93
August 31, 2021
Six months ended		9,510		-5.3%		8,446	-%		36.38			36.37
August 31, 2020
(2) Consolidated Financial Position
											(Millions of yen, except ratio)
										Equity attributable		Ratio of equity
			Total assets		Total equity		attributable to owners
					to owners of parent
										of parent to total assets
As of August 31, 2021				515,288		273,545		270,187				52.4%
As of February 28, 2021		487,428		249,561		246,266				50.5%

2. Dividends

		Dividends per share (yen)
	End of 1Q	End of 2Q	End of 3Q	Year-end	Annual total
Year ended	-	12.00	-	12.00	24.00
February 28, 2021
Year ending	-	26.00
February 28, 2022
Year ending			-	26.00	52.00
February 28, 2022
(Forecasts)

Note: Revisions to the most recently announced dividend forecast: No

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3. Projected Consolidated Results for the Fiscal Year Ending February 28, 2022

(from March 1, 2021 to February 28, 2022)

(Millions of yen, percentage change from the corresponding period of the previous year)

	Revenue	Operating profit	Profit before tax	Profit attributable to
	owners of parent
Year ending	485,000	24.5%	58,000	113.4%	59,500		119.0%	42,500	124.5%
February 28, 2022
Note: Revisions to the most recently announced sales and earnings forecast: Yes

The automobile, semiconductor, and electronic components markets have expanded globally, and the demand from investment related to new infrastructure, such as 5G and new energy, remains high in China. Although there is uncertainty about the future, such as shortages of parts supply including semiconductors, we have been receiving orders above our expectation in Motion Control and Robotics which are the main businesses.

Hence, we have made an upward revision of our annual forecasts for the fiscal year ending February 28, 2022, which we announced on July 9, 2021.

Average exchange rate assumptions during the period from September 1, 2021 to February 28, 2022 for EUR and KRW are revised from those at the first quarter to 1EUR = 129.0 JPY and 1KRW = 0.093 JPY. Assumptions for USD and CNY are not revised, 1USD = 109.0 JPY and 1CNY = 16.80 JPY.

Our forecast for annual dividend remains unchanged.

*Please see supplements to financial results on our website for detailed information. (https://www.yaskawa-global.com)

*Notes:

1. Major Change in Scope of Consolidation: No
2. Changes in Accounting Policies, Changes in Accounting Estimates:
3. 1. Changes in accounting policies required by IFRS: No
   2. Changes in accounting policies other than the above: No
   3. Changes in accounting estimates: No
4. Number of Common Shares Outstanding

The number of shares outstanding including treasury shares

The number of treasury shares

Average during the period

As of

August 31, 2021

As of

August 31, 2021

Six months ended August 31, 2021

266,690,497

5,277,758

261,404,703

As of

February 28, 2021

As of

February 28, 2021

Six months ended August 31, 2020

266,690,497

5,291,858

261,384,613

• This financial report is not subject to the audit procedure. *About the appropriate use of business forecasts and other matters

• Forward-lookingstatements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable, and are not disclosed for the purpose of making a commitment to their achievement. Actual results may differ from these statements for a number of reasons.
• The Company will hold a telephone conference for securities analysts and institutional investors on October 11, 2021.

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4. Qualitative Information on Quarterly Results Business Performance

In the second quarter under review, the business environment in Yaskawa Group has been normalized from COVID-19 crisis, and active capital investments have been made in the manufacturing industry as a whole to upgrade and automate production. The automobile, semiconductor, electronic components markets have expanded globally, and investment related to new infrastructure, such as 5G and new energy, continued in China. As a result, demand remained generally high.

In this environment, although the business was affected by shortages of parts supply, sales increased significantly from the same period of the previous fiscal year as a result of an accurate response to strong demand particularly in the Motion Control and Robotics segments. On the profit front, though operating profit was affected by the rise in logistics cost and raw material cost, it increased significantly year on year due to sales improvement and thorough cost control.

Japan:

The demand remained strong with active capital investment in the automobile, semiconductor, and electronic components markets.

U.S.:

Capital investment related to semiconductors and automobiles remained at a high level, and demand in the machine tool market also increased. As a result, our business has been on the expanding trend.

Europe:

The market continued to recover as the economy normalized, and demand grew particularly in automobiles and machine tools.

China:

The demand related to automobiles and new infrastructure, such as 5G and new energy, remained strong. As a result, capital investment continued to be active for the most part.

Other Asian Countries:

Despite the impact of COVID-19re-expansion in ASEAN countries, capital investment related to semiconductors and LCDs grew in South Korea, Taiwan, and other countries.

The business performance of the first half of fiscal 2021 is as follows.

	Six months ended		Six months ended	Change
	August 31, 2020		August 31, 2021
Revenue	186,846 million JPY	239,907	million JPY	+28.4%
Operating profit	13,294 million JPY	26,867	million	JPY	+102.1%
Profit attributable to owners of parent	9,510 million JPY	21,164	million	JPY	+122.5%
Average exchange rate for USD	107.22	JPY		109.54	JPY	+2.32	JPY
Average exchange rate for EUR	120.41	JPY		130.78	JPY	+10.37 JPY
Average exchange rate for CNY	15.23	JPY		16.92	JPY	+1.69	JPY
Average exchange rate for KRW	0.089	JPY		0.097	JPY	+0.008	JPY

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Performance by Business Segment

The business of the Yaskawa Group is divided into four segments.

The performance of each business segment for the first half of fiscal 2021 is as follows.

Motion Control	Revenue	116,484 million JPY (+35.7% year-on-year)
Operating profit	19,682 million JPY (+58.3% year-on-year)

Motion Control segment is comprised of AC servo & controller business and drives business.

As a result of active capital investment over the world, sales in the segment as a whole were favorable and revenue increased significantly. On the profit front, though operating profit was affected by the rise in logistics cost and raw material cost, it increased due to revenue improvement.

The demand for semiconductors and electronic components remained high globally, especially in Japan, the United States, and South Korea. In addition, sales were generally strong because in China, demand for 5G, such as smartphones and base stations, increased, and active capital investment was carried out in new energy-related fields such as lithium-ion batteries and solar panels.

In addition to vitalization of capital investment due to global market recovery, demand for infrastructure, such as cranes, and textiles expanded in China, resulting in revenue increase.

Robotics	Revenue	86,401 million JPY (+32.1% year-on-year)
Operating profit	6,957 million JPY (+179.8% year-on-year)

In the automobile market, which is the main market of this segment, there was active investment in the overall market following expansion of the automation of production facilities. Also, demand for EVs (electric vehicles) and batteries increased.

Moreover, investment was also made in the general industrial sector such as logistics, food, and 3C* to upgrade and automate production on a global basis.

In addition to this demand situation, steady sales of semiconductor robots led to significant revenue increase. At the same time, operating profit increased significantly due to revenue increase and improvement of capacity utilization.

*3C: Capital letters of computer, communication, and consumer electronics.

System Engineering	Revenue	27,140 million JPY (+11.1% year-on-year)
Operating profit	1,217 million JPY (+523.5% year-on-year)

The System Engineering segment consists of the Environment and Social Systems Business and the Industrial Automation Drive Business.

Revenue increased from the same period of the previous fiscal year and operating profit also increased because of thorough profit management and cost control.

[Environment and Social Systems Business]

Due to the normalization from COVID-19 crisis, the sales of water supply and sewerage systems in Japan and electrical equipment for large-scale wind turbines in Europe were steady.

[Industrial Automation Drive Business]

Although steel plant-related revenue in Japan was sluggish, the sales of port cranes overseas were steady.

Other	Revenue	9,881 million JPY (-11.5%year-on-year)
Operating loss	21 million JPY (improved by 228 million JPY year-on-year)

Other segment is comprised of logistics and other businesses.

While revenue decreased from the same period of the previous fiscal year particularly in Japan, operating profit increased mainly due to improvement of the product mix.

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5. Consolidated Financial Statements

1) Consolidated Balance Sheets

				(Millions of yen)
		As of February 28, 2021		As of August 31, 2021
Assets
Current assets
Cash and cash equivalents	50,953	52,555
Trade receivables	127,577	142,802
Inventories	101,494	109,180
Other financial assets	1,961	2,792
Other current assets	21,437		20,290
Total current assets	303,423	327,622
Non-current assets
Property, plant and equipment	86,475	85,554
Goodwill	6,604	6,631
Intangible assets	17,917	17,676
Right-of-use assets	12,529	11,776
Investments accounted for using equity method	9,009	9,334
Other financial assets	30,949	32,705
Deferred tax assets	14,473	15,973
Other non-current assets	6,045		8,013
Total non-current assets	184,004		187,666
Total assets	487,428	515,288

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